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House Speaker Chuck “The Eunuch” Kleckley Friday removed House Appropriations Committee vice chairman Cameron Henry (R-Metairie) and Appropriations Committee member Joe Harrison (R-Gray) one day after each voted for a motion by Rep. Katrina Jackson (D-Monroe) that the administration opposed.

(Eunuch: (1) a castrated man placed in charge of a harem; (2) a man deprived of the testes or external genitals (3) one who lacks virility or power—Merriam-Webster Online Dictionary.)

Henry was reassigned to the House Civil Law and Procedure Committee while Harrison was moved to the House Commerce Committee.

When Sen. Dan Claitor (R-Baton Rouge) jokingly referred to himself as the “former member of the Senate Finance Committee” during Thursday’s joint hearings by the House Appropriations and the Senate Finance Committee, he was closer to the truth than even he wanted to admit.

Claitor had just objected to a motion by Senate President John Alario (R-Westwego) to defer action on the proposed contract between Blue Cross/Blue Shield (BCBS) and the state that called for BCBS to take over as third party administrator for the Office of Group Benefit’s (OGB) Preferred Provider Organization health coverage plan.

His objection forced a vote on Alario’s motion and the motion subsequently passed by a vote of 11-3 but the House never got a chance to vote because Commissioner of Administration Kristy Nichols pulled the contract from the committees’ agenda before the House members could vote on Rep. Katrina Jackson’s substitute motion to reject the contract.

Claitor, at this writing, still has his seat on the Senate Finance Committee but that, as Jindal has shown, is subject to change on very short notice.

The latest purge brings to four the number of legislators Gov. Piyush “The Putsch” Jindal has teagued this year for having the temerity to oppose the state’s absentee chief executive. Earlier this year, Reps. James Morris (R-Oil City) and Harold Richie (D-Bogalusa) were removed from the vice-chairmanship of their respective committees.

Morris was demoted from the House Natural Resources and Environment Committee for opposing Jindal’s decision to use one-time money to fund recurring expenses in the state’s General Budget. Richie opposed tax rebates for those who donate money to private and parochial schools.

Jindal has made it abundantly clear on several other occasions that dissention will not be tolerated in his administration. There is simply no room for dialog. This incredibly petulant governor has never learned that politics is the art of compromise. He has fired department heads, university presidents, physicians, attorneys, board members and rank and file employees at the slightest hint that they are not 100 percent on board with his agenda.

Jindal spokesperson Shannon Bates, of course, issued the standard denial that the administration had requested (read: demanded) that Harrison and Henry be removed.

The administration did provide a prepared statement from the governor who, as usual, is campaigning, ostensibly, for Mitt Romney in Ohio: Speaker (“Eunuch”) Kleckley is a fair-minded and proven leader,” Piyush (or Timmy Teepell or Kyle Plotkin—who knows who writes this stuff?) said. “We support the Speaker and the decisions he makes regarding the organization of House committees.”

While he didn’t say so, it is rumored that Jindal also has some ocean front property in Kansas that he’s willing to sell.

Just how long the legislature—and the state’s citizens—will stand for his unabashed grab for absolute control of every facet of state government is anyone’s guess but Henry and Harrison were livid over their ouster.

Harrison, interviewed by LouisianaVoice, said the occupants of the State Capitol’s fourth floor “are not people of good character. Their word is no good.”

Seven members of the Appropriations Committee are elected by members of the House—one from each congressional district—and Harrison was the leading vote getter for the position from the Third Congressional District when Kleckley (aka “Gelding”) approached him and asked that he withdraw as a candidate so that the second-leading vote-getter, Rep. Simone Champagne (R-Erath) could be on the committee. “He (Kleckley) said he would then appoint me and he promised that he would not remove me,” Harrison said.

Ironically, Champagne was promoted by Kleckley to Henry’s old vice chairmanship.

“I agreed and when he called me on the phone to tell me I was no longer on the committee, I reminded him of that. I said, ‘So, you are not a man of your word.’

“He didn’t even show me the dignity of calling me into his office to fire me; he did it over the phone. And he wouldn’t even give me a reason,” Harrison said of Kleckley. “He just said some other Republicans had complained about me. I asked, ‘Which Republicans, Timmy Teepell?’ He said, ‘I don’t take my orders from Timmy Teepell.’ I said, ‘Yeah, right.’”

Harrison lashed out at the administration, saying, “Everything they do (on the legislative committees) is scripted. I’m not making this up; I’ve seen the scripts. They hand out a list of questions we are allowed to ask and they tell us not to deviate from the list and not to ask questions that are not in the best interest of the administration.

“That is not how the State Constitution defines the three branches of government,” he said. “We no longer have a legislative branch of government.

“I don’t mind following men, but I don’t follow boys,” he said in obvious reference to the gaggle of young aides with which Jindal has surrounded himself. “We’re being directed by a bunch of youngsters on behalf of a man not even in the state. How can we, in the critical financial situation this state is in, have inept youngsters telling us what the governor wants when we don’t even see the man?”

He then singled out Jindal’s former chief of staff Timmy Teepell who resigned a year ago to hed up the Baton Rouge operations of OnMessage, a political consulting firm out of Maryland. OnMessage has no Baton Rouge address or phone number and Teepell apparently runs his consulting business from the governor’s office on the fourth floor of the State Capitol.

“Teepell is the puppeteer in this administration. How can you have a man serving as de facto head of state government who never went to school and who never interacted with other people while growing up? The man is anti-social,” Harrison said.

Henry was no less critical of Jindal.

“It is the job of legislators, particularly those serving in leadership roles, to ask the difficult questions necessary to ensure that taxpayer dollars are spent efficiently and wisely,” he said.

“I have been at odds with the speaker and the administration over fiscal issues for the last several years, asking questions about the constitutionality of the state budget; use of one-time and contingency money, fund sweeps and disastrous mid-year budget cuts that impact healthcare systems like LSU, as well as higher education.

“This action by the speaker and the governor demonstrates that they are afraid of having legislators do the job they were elected to do. The people of Louisiana are suffering as a result.”

He said what he called a series of “irresponsible decisions by the speaker and administration” demonstrate that they are not serious about fiscal discipline and following the Constitution.

“The State Constitution contains clear and strict limitations on the budget process for a very good reason,” he said. “These sensible limitations on deficit spending exist so that we can craft realistic, fiscally-responsible budgets through a transparent and deliberative process. Following the constitution is the only way to have a stable, sustainable budget that best serves the needs of the people, families and businesses of Louisiana.”

He said he was disappointed but not surprised at the administration’s action. He said Jindal and Kleckley were trying to ensure they had “yes-men and yes-women” on important committees who would trust the administration and not challenge it.

“We didn’t get elected to trust people. We got elected to ask questions,” he said.

“A lack of planning on your part does not constitute an emergency on my part.”

—Louisiana Federation of Teachers legislative director Mary Patricia Wray, quoting one of her high school teachers in her testimony Thursday before two legislative committees, in describing the lack of planning and accountability on the part of the Piyush Jindal administration’s proposal to contract with Blue Cross/Blue Shield for the administration of the Office of Group Benefits’ Preferred Provider Organization.

“A policy must not be to identify an emergency which government has either created or failed to prevent and then find a public servant to blame and punish while we promote so-called reform.”

—Mary Patricia Wray, during that same testimony.

“Policy makers keep finding more and more creative ways and more and more sorry excuses to support corporate tax avoidance over public good, privatizing over restoraton and feel-good initiatives over real solutions for our very, very valuable public insititutions.”

—Mary Patricia Wray, on a roll as she ripped into the Piyush administration during her testimony.

Lyndon Johnson once said he had no use for any politician who, 30 seconds after entering a crowded room, could not tell who was for him and who was against him.

He would have little use for Gov. Piyush Jindal, the governor’s hand-picked committee chairmen or his chief budget officer, Commissioner of Administration Kristy Nichols.

It took them four hours Thursday to determine there were not enough “fer-votes” to push through an administration-proposed contract that would have Blue Cross/Blue Shield of Louisiana serving as the third party administrator (TPA) of the Office of Group Benefits (OGB) Preferred Provider Organization (PPO).

The upshot was a four-hour hearing that instead of ending with celebratory fireworks for the administration, ended first with considerable confusion over Mason’s Rules of Order, and then a whimper as Nichols pulled the bill from the flames just before it was reduced to a pile of metaphorical ashes.

At the end of the day, State Rep. Katrina Jackson (D-Monroe) had Nichols, House Appropriations Committee Chairman Jim Fannin (D-Jonesboro) and Senate President John Alario (R-Westwego) circling the wagons in a desperate attempt to avoid further embarrassment.

But Jackson had lots of help. Several members of the two committees, primarily from the House Appropriations Committee, peppered Nichols with a barrage of questions with several legislators indicated that they had heard from hundreds of constituents and no one supported turning over the administration of the PPO to BCBS.

One of those, Rep. Rogers Pope (R-Denham Springs), a former Livingston Parish School Superintendent was critical of what he termed a lack of communication between the administration and education officials about the proposed changes.

But it was Mary Patricia Wray, legislative director for the Louisiana Federation of Teachers, who delivered the most withering criticism of the proposed contract, coupling it with a blistering attack of the Jindal administration’s onslaught against public schools.

“Some say the school districts will save money,” she said. “Some have mentioned savings of $35 million but one important fact has been overlooked. Many who tout these savings to school districts are the very parties who have crafted policies that have starved our public schools of the funding they so desperately need.”

Noting that while public school systems have received no increase in their per-pupil funding (Minimum Foundation Program funding) for more than four years, she said, “millions of dollars of funds constitutionally dedicated to our K through 12 public schools are going to leave this year to go to non-public schools of inferior quality.

“Moreover, this legislature approved a policy that provides un-capped tax rebates for donations to non-public schools while simultaneously our governor vetoed a bill that would have provided reasonably-capped rebates for donation to our inadequately-funded public schools.

“These priorities created the same emergency that their supporters now frantically want you to believe will be partially undone with your vote today—if you vote yes.

“So while the policies of the same administration that now asks you to support this contract have been consistently, habitually, and unapologetically to place funding public education at the very bottom of the priority, it seems a bit odd that they would take this moment to become proponents for the adequate funding of K through 12 education in our state.”

Wray called the proposed contract “fixing something that is not broken” and that it was “high on the administration’s list—and not because they suddenly care about adequately funding public schools they denigrate or supporting the institutions in which the teachers they humiliate are educating the next generation of Louisiana citizens.”

She said the policies of the Jindal administration “have starved government at every level. The lack of planning on their part should not and must not constitute an emergency for the people you serve. This contract may seem inconsequential but to the people served by OGB and to the people who elected you, it about doing the right thing, setting the right standards. Our public servants are more valuable than the rhetoric of the moment. They are more important than the flip-flop policy making that constantly puts them and their benefits in the crosshairs of our state’s budget crisis.”

But the real fun occurred over the last few minutes of the four-hour session.

It all started when Alario, after apparently realizing the numbers were there for concurrence by both the House Appropriations and Senate Finance committees, said, “We all know that change is difficult,” a rather odd observation given the Jindal administration has never considered the difficulties involved in change when he had the votes on such matters as education.

“I think we probably need to give a little more thought and a little more time on this issue,” he continued. “I’m going to suggest that we defer action on this matter today.”

Fannin immediately made an identical motion on behalf of the Appropriations Committee.

Before they could vote on Alario’s motion, however, Jackson offered a substitute motion to vote on the contract immediately. That motion passed the Appropriations Committee by a vote of 16-9. Voting for her substitute motion were Reps. Cameron Henry (R-Metairie), James Armes (D-Leesville), Jared Brossett (D-New Orleans), Henry Burns (R-Haughton), Roy Burrell (D-Shreveport), Brett Geymann (R-Lake Charles), Joe Harrison (R-Gray), Jackson, Edward James (D-Baton Rouge), Walt Leger (D-New Orleans), Helena Moreno (D-New Orleans), James Morris (R-Oil City), Pope, John Schroder (R-Covington), Patricia Smith (D-Baton Rouge) and Ledricka Thierry (D-Opelousas).

Voting no on Jackson’s substitute motion were Reps. Fannin, John Berthelot (R-Gonzales), Robert Billiot (D-Westwego), Chris Broadwater (R-Hammond), Simone Champagne (R-Erath), Charles Chaney (R-Rayville), Lance Harris (R-Alexandria), Bob Hensgens (R-Abbeville) and Anthony Ligi (R-Metairie).

In the voting along party lines, seven Republicans were evenly split on Jackson’s motion with seven for and seven against. Two Democrats voted no and nine voted yes.

Reps. Patrick Connick (R-Marrero), Franklin Foil (R-Baton Rouge) and Jack Montoucet (D-Crowley) were absent.

After that vote, presiding chairman Sen. Jack Donahue (R-Mandeville) attempted to call a Senate Finance Committee vote on Jackson’s substitute motion before being informed that someone from Finance had to make a similar motion. When no one did, Jackson’s motion died.

When he finally realized that the next vote needed to be on Alario’s motion to defer action, he announced the motion and asked if there were any objections and Sen. Dan Claitor (R-Baton Rouge) voiced his objection, forcing a roll call vote.

Claitor was able to inject some gallows humor into situation. When he voiced his dissent, he referred to himself as a “former Senate Finance Committee member” in reference to two other legislators—Reps. Harold Richie and Morris—who were demoted from their vice chairmanships of the House Committee on Insurance and House Natural Resources and Environment Committee, respectively.

They opposed Jindal and were summarily demoted. Richie opposed tax rebates for those who donate money to private and parochial schools while Morris fought Jindal over the governor’s decision to use one-time money to fund recurring expenses in the state’s General Budget.

The Senate members then voted 11-3 in favor of Alario’s motion to defer action. Those in favor of deferral included Donahue, Norby Chabert (R-Houma), Bret Allain (R-Franklin), Ronnie Johns (R-Lake Charles), Gerald Long (R-Natchitoches), Fred Mills (R-New Iberia), Dan “Blade” Morrish (R-Jennings), Greg Tarver (D-Shreveport), Francis Thompson (D-Delhi), Mike Walsworth (R-West Monroe) and Bodi White (R-Baton Rouge).

Voting against Alario’s motion to defer were Sens. Sherri Smith Buffington (R-Keithville), Claitor, and Ed Murray (D-New Orleans).

Sen. Eric LaFleur (D-Ville Platte) was absent.

Before a vote could then be taken on Fannin’s motion to defer consideration of the contract for one week, Jackson threw another curve at the proceedings by making a second substitute motion—this one to reject the contract outright.

That brought things to a screeching halt as it appeared no one knew what to do: a vote would be suicidal to proponents of the contract since the House committee seemed almost certain to go along with Jackson.

Morrish, after several minutes of total confusion, was finally recognized and asked, “What happens if the House votes to reject? If the substitute motion passes, where will the contract stand?”

“The contract is rejected,” responded Donahue.

“Even without a Senate vote?”

“With no Senate vote,” Donahue repeated. “If either body votes to reject, the contract is rejected.”

As more confusion reigned and amid the chatter that was reminiscent of a crowded room scene from a movie (only without the rattle of ice and the clinking of drink glasses), the barely audible word “adjournment” was suggested by someone on one of the committees at least twice.

Finally, after a full five minutes of idle chatter, Donahue explained that because it was a joint meeting of two individual committees and not a meeting of the Joint Committee on the Budget, “the rules are different.”

The only thing that needed to be done, however, was to call a vote on Jackson’s motion to reject the contract which, of course, would be a disaster for the administration.

Donahue, obviously in a quandary, began stalling. At that point, the two committees had been in session for four hours and five minutes.

At precisely 4:09:40, Nichols quietly slid back into a seat at the witness table in front of the committees looking defeated. Again, the word “adjourn” rose above the din from someone on one of the committees.

But right on cue, at 4:10:32, Donahue called on Kristy. “Commissioner, do you have anything you want to bring to the agenda at this time?”

It was almost as if his line was scripted.

“Mr. Chairman, I’d like to ask that the committee allow me to remove the contract from the agenda at this time,” she replied.

“I don’t think you need permission. You don’t need permission. You can just pull it from…”

“We’d like to come back at a later date,” she interrupted abruptly. “We’d like to pull it.”

It took another ten seconds for some to make the formal and more audible motion to adjourn.

In the words of the delightful Yogi Berra: It ain’t over ’til it’s over.

And in the immortal words of Walt Kelly in his wonderful Pogo comic strip: To be drug out.

Gov. Piyush Jindal still tells anyone who will listen (and those numbers are dwindling daily) that he has the job he wants.

Apparently the job is that of perpetual candidate for some as yet undefined national office (president and vice president are both taken) and his travel schedule for the past 10 months certainly reflects that notion.

Since last December, Jindal has taken no less than 23 separate trips to points far and wide, missing the equivalent of two entire months from his office and running up a tab of more than $75,000—just for his security detail.

And that’s just for this year.

While his campaign fund paid for his costs on most, if not all of those trips (it is assumed, at least, that he paid for family vacations to Los Cabos, Mexico and Destin, Florida, himself—his office refused to provide an accounting), the Department of Public Safety picks up the tab for his security detail.

Last December, he and his family took a vacation trip to Los Cabos, Mexico, and took a state police security detail that cost Louisiana taxpayers more than $13,900 for travel, lodging, meals and car rentals, according to records provided by State Police.

He took a security detail (at a cost of $3,443.79) on his family vacation to Destin, Florida in July.

Jindal has come under increasing criticism for his frequent trips out of state when Louisiana is faced with a multitude of budgetary, environmental, unemployment, healthcare and higher education problems.

He seems at times to be merely distracted by the myriad state socio-economic problems and increasingly consumed by personal political ambitions that are obvious to even the most casual observer. His droll “I have the job I want” response to questions about his intentions no longer carries any credibility with legislators or voters.

Other trips by Jindal included jaunts to Florida, Washington, D.C., New Mexico, North Carolina, Virginia, Utah, Pennsylvania, Colorado, New Hampshire, Georgia, Iowa and Nevada.

Jindal’s office says he is still governor when he is out of state, but the State Constitution says that when the governor is out of state, the lieutenant governor becomes the acting governor.

The only problem with that is Jindal rarely—if ever—notifies Lt. Gov. Jay Dardenne when he leaves the state. Dardenne has to read about the governor’s absence in the Baton Rouge Advocate.

And now that he has been picked to chair the Republican Governors Association, he will in all likelihood be absent even more from his fourth floor State Capitol office.

At $130,000 per year, Jindal earns $356 per day. His out-of-state travel this year alone would suggest that he refund $21,360 to the state—if he were predisposed to do such a thing, which he is not. He has even refused to return $55,000 in illegal campaign contributions that were laundered through a St. Tammany Parish bank by the bank president so it’s not likely he will repay the state for the days he was absent from his office.

Following is a list of out-of state trips by Jindal, beginning at the end of December 2011 and the cost to the state for providing his state police security detail on each trip:

• Dec. 27, 2011-Jan. 2, 2012—Los Cabos, Mexico: $13,904.23 (five officers);

• Jan. 2-3—Des Moines, Iowa: $1,642.03;

• Jan. 20-23—Miami, Florida: $3,820.85;

• Feb. 1-3—Naples, Florida: $500.75;

• Feb. 10-11—Washington, D.C.: $1884.30;

• Feb. 24-27—Washington, D.C.: $630;

• March 24-25—Washington, D.C.: $2,466.35;

• April 26—Washington, D.C.: $532.10;

• April 26-27—Albuquerque, New Mexico: $224;

• April 28—Washington, D.C.: $715.10;

• May 16-19—Charlotte, North Carolina: $422;

• June 7-8—Hot Springs, Virginia: $3.579.05;

• June 21-22—Park City, Utah: $7,469.46;

• June 29-30—Washington, D.C.: $7,398.46;

• July 4—Pittsburgh, Pennsylvania: $5,950.96;

• July 24-27—Destin, Florida: $3,443.79;

• July 29-Aug. 4—Aspen and Denver, Colorado: $1,704.84;

• Aug. 4—Washington, D.C., Arlington, Virginia: $2,903.84;

• Aug. 27—Tampa, Florida: $1,231.66;

• Sept. 12-13—Manchester, New Hampshire: $1,619.20;

• Sept. 22—Atlanta, Georgia: $1,787.14;

• Sept. 24—Mason City, Iowa: $1,173.02;

• Oct. 2-4—Denver, Colorado: $522;

• Oct. 4—Las Vegas, Nevada: $2,697.80;

• Oct. 5—Gainesville, Florida: $461.39.

Editor’s note: LouisianaVoice would like to acknowledge and thank Kay Prince of Ruston for contributing much of the research that went into this article. She has worked tirelessly with former Sen. Butch Gautreaux on this issue and was gracious enough to share this information with us for our use.

A former employee of the Louisiana Office of Group Benefits OGB) has taken issue with several points in the proposed contract between the Division of Administration (DOA) and Blue Cross/Blue Shield of Louisiana (BCBS) that calls for BCBS to take over the operations of OGB’s Preferred Provider Organization (PPO) plan as the plan’s third party administrator (TPA) in January.

The former employee, who is now retired, examined the contract which is scheduled for consideration by a special joint meeting of the House Appropriations and Senate Finance committees on Thursday, Nov. 1 and found several areas in which he said the state will be getting a bad deal if the contract is approved.

Gov. Piyush Jindal has pushing for the transition for nearly two years now in what he insists will be a cost-cutting measure but which will result in the loss of 177 positions at OGB and 111 actual jobs. The other 66 positions are currently vacant.

One of the things the former employees warns about is an obscure clause on page 8 the contract which says the maximum amount to be paid BCBS shall not exceed $1.1 billion for any one year “unless the director of the Office of Contractual Review approves a contract amendment.” (emphasis ours.)

That is an important provision considering what happened with the privatization of the Office of Risk Management (ORM) in September of 2010. Under terms of that contract, the state was to pay F.A. Richard and Associates (FARA) of Mandeville $68 million to be the TPA for ORM but only a few months into its contract, FARA asked for and received a $6.8 million amendment to its contract, increasing the over contract cost to just under $75 million.

Legislators were upset to learn that the amendment was legal because the law allows a one-time contract amendment of up to 10 percent with only the approval of Contractual Review. The FARA contract amendment was exactly 10 percent and legislators had no say in the matter.

The Jindal administration claims that allowing BCBS to become the TPA for OGB will save the state $20 per year. But if BCBS should seek a similar 10 percent increase in its contract, the $110 million in additional contract costs would wipe out any savings.

Administration projects of OGB’s spending 100 percent of budgeted amounts in several areas whereas the agency historically has spent between 65 and 80 percent of budgeted amounts on administrative costs. “This inflates the projected savings by approximately 20-35 percent,” the retired OGB official said.

Projected savings on building rental may also be overstated, he said, because OGB is locked into a 10year lease for its Baton Rouge office space. The cost of that lease is $100,000 per month and will not be reduced unless OGB can renegotiate its lease.

He said it was misleading to compare Louisiana to other states. First, the only other state that self-administers its health benefits program is Utah which has a smaller population. “You cannot compare staffing patterns for completely different ways of doing business” as the administration did with Florida and Mississippi, for example. “You need to compare total administrative costs for the other states, not just (the) number of employees,” he said.

But of even more importance, he said, is the misconception that it was a sound move to reduce premiums by 7 percent last July.

“The program operated at a small deficit for the fiscal year ending June 30, 2010 (before the premium rate reduction) and is almost guaranteed a significant loss for Fiscal Year 2013 with the 7 percent reduction in premium that was approved by the Division of Administration,” he said.

“The only reason that premiums could be reduced was the fact that the program had a significant surplus. For the current fiscal year the program will be operating on its surplus for significant portion of the current year’s operating expenses…but this cannot go on forever.

“It is another example of using one-time funds to pay for continuing operations of the state. Once the surplus is exhausted, rates will need to be increased significantly to cover continuing operations,” he said.

State health insurance programs have varied over the years and remained pretty much in a state of flux until the administration of OGB CEO Tommy Teague, who was fired on April 15, 2011. It took a major political scandal involving a top state administrator and underworld boss Carlos Marcello to pull the state’s health and life insurance programs out of the doldrums.

OGB itself is relative new as a state agency, having been created on Sept. 1, 1979, as a result of the FBI’s Brilab sting operation which resulted in Commissioner of Administration Charles Roemer’s conviction of conspiracy to violate federal racketeering laws over accusations that he and Marcello took part in a scheme to win a multi-million dollar state group insurance contract through bribery.

Roemer served 15 months of a three-year prison term before his conviction was overturned.

Prior to July 1, 1970, each state agency was responsible for procuring its own insurance contract for its employees. This created a multitude of problems since each contract had different dates, coverage, premiums, etc. Plus, when an employee transferred from one agency to another, it forced the employee to switch coverage which resulted in considerable confusion and in some cases, loss of coverage because of different waiting periods among the various contracts.

The Uniform Insurance Act was passed and went into effect on July 1, 1970 and all Executive Branch agencies were brought under one consolidated health/life insurance contract, which was awarded to Blue Cross for health and Pan American Life for life insurance.

In 1973, when Blue Cross proposed a significant rate increase, the contracts with both Blue Cross and Pan American were terminated and the state’s health and life insurance programs became self-funded by the state. Continental Assurance (CNA) was retained as the TPA to handle claim payment functions, an arrangement that remained in effect for the remainder of the seventies.

It was during this time that the FBI began its sting operation after learning of alleged bribes and the legislature subsequently passed Act 749 of the 1979 regular session which created OGB and placed it under the State Treasurer’s office.

On May 1, 1981, the CNA contract was terminated and all employees who were working for CNA were offered an opportunity to become Civil Service employees, effective May 1. The agency operated under this arrangement until 1998 when the legislature was forced to make a supplemental appropriation of $77 million to cover an unfunded accrued liability (UAL) in the program because the OGB trustees had failed to increase rates to keep up with the program’s claims experience.

The program continued to operate with an UAL until the mid-2000s at which time it began generating a surplus each year through FY 2011, going from a $105 million deficit to its current $500 million surplus in about five years.

Here are the links to the committee memberships:

http://house.louisiana.gov/H_Cmtes/H_Cmte_AP.asp
http://senate.legis.louisiana.gov/Finance/Assignments.asp